Brace yourselves, The effects of the so-called “Budget Sequestration” are about to hit. The two parties aren’t going to compromise so the automatic budget cuts are going to hit and hurt the economy. The media will probably ultimately blame the two political parties for not coming together to fix something that EVERYONE knows is . . . → Read More: The Farce That is Sequestration
At the recent VP debate, I watched two gentlemen blame each other’s “spending” for causing the recession. This does not bode well for MMT or reality entering our politics. Up until now, I thought there was hope for Democrats. But after watching the VP debate, if they all start following Biden’s lead it’ll mean . . . → Read More: MMT Has a Long Way to Go
It is astounding how long experts can keep repeating the conventional wisdom in the face of -what SHOULD be – overwhelming reality. The way things work today, the Federal Reserve sets the interest rate. Additionally, inflation is determined primarily by aggregate demand. We have nearly 5 years of data backing this stuff up. Yet, . . . → Read More: All that Bunk About Deficits and Skyrocketing Interest Rates
You probably all know about the story of Copernicus. In the 1500s he spread the idea that the Sun – and not the Earth – was at the center of our solar system. Despite fierce resistance from the Church, the idea caught on and changed the way scientists think about our place in the Universe. . . . → Read More: Reframing Money
Back in October, Senator Bernie Sanders put together a panel of economists and other public policy experts to come up with a plan to “reform” the Federal Reserve structure. As his news release makes clear, there is a lot of room for improvement.
Sanders announced formation of his expert advisory panel in the wake of . . . → Read More: Sen. Sanders showing MMT some love while reforming Fed
In 2009, there was a crazy, wild-eyed passion spreading among conservatives and the Teabagger. Here are some choice quotes from prominent conservatives and teabagger favorites.
Glenn Beck and Ron Paul
Ron Paul: [snip] So the bailout is a disease, it’s contagious, it’s ongoing, and the result of this will be the destruction of the dollar, . . . → Read More: Still waiting on that hyperinflation.
The European Union was set up in a manner that guaranteed that eventually, one of its members was going to have a debt crisis. What makes the Euro so unique is that it was setup almost like a gold standard. Each nation does in the Eurozone does not issue it’s own money. It must be . . . → Read More: Euro Zone Debt Crisis Was Going to Happen Eventually
Last week it appeared that a bailout deal between Greece and the rest of the EU was going to go through. However, it seems that the prime minister of Greece is going to quite literally, “let the people decide“. Now, the Greek people must decide if they want to vote for the bailout – which . . . → Read More: The Dilemma Faced by Greek Citizens: How to Vote?
Nothing makes an argument more frustrating than when 2 people are using the same words to argue over 2 different things. When discussing strategies to get out of the recession, market fundamentalists (usually conservatives) argue to let the markets work. Others, usually liberals who sorta-kinda understand Keynesian economics, argue that we need more stimulus to . . . → Read More: Unemployment Vs. Economic Efficiency
Once when I was explaining Modern Monetary Theory(MMT) to someone in person, she asked me in a very irritated tone, “what is your point?” I realize now that getting too far into the details about government spending, trade deficits, and bond markets can make some people’s eyes glaze over without assuring them that the end . . . → Read More: Job Guarantee: Zero Unemployment Without Causing Inflation